Economics Questions

Re: Minimum Wage Change?

Smiling Dave — Wed, 28 Jul 2010 22:59:11 GMT

About Obama: It seems so far he has done everything he can for unions. So that means he will do all he can to raise the minimum wage, which unions love.

Re: Minimum Wage Change?

Spideynw — Wed, 28 Jul 2010 22:20:10 GMT

(b.) a minimum wage drop to, say $5.50/$6 would significantly help the unemployment situation?

Among teen-agers, and the lower skilled class, probably.

Re: Minimum Wage Change?

chrispy — Wed, 28 Jul 2010 22:18:55 GMT

I doubt a decrease in the minimum wage (alone) would significantly reduce unemployment generally. Most people with jobs make more than the minimum wage, and most people who earn minimum wage don't do so for very long. So most currently unemployed people are used to earning more than the minimum and - especially given current incentives like unemployment insurance - most would be unlikely to accept a job at the current minimum, let alone a lower wage.

Lowering the minimum would help specific segments of the population, namely, the least skilled workers. Black teenagers in particular tend to be hurt the most by the minimum wage, even when the economy is generally well off. I believe the unemployment rate for black teenagers topped 50% in September 2009, up from an all time low of around 20% in 2000. Eliminating or lowering the minimum wage would reduce unemployment for lower skilled workers.

As far as what Obama will do, I don't know. I'm sure he would increase the minimum wage if he could, but it doesn't seem like a high priority to his administration. That seems kind of strange to me, since increasing the minimum wage probably has broad popular support, and most republicans in congress (I assume) don't know why it's a bad idea. So presumably he could get it passed if he really wanted to, hopefully he doesn't want to enough.

Re: Minimum Wage Change?

Mike — Wed, 28 Jul 2010 22:16:42 GMT

what the hell does poor even mean exactly???? and if that statement by obamagod is accurate - he is even more of an idiot than I thought.

everyday I wake up hoping it was all a bad dream

Re: Minimum Wage Change?

pentahedron — Wed, 28 Jul 2010 21:15:31 GMT

Well they dont have the numbers in the house to block it but the senate would likely fillibuster it.So long as we keep raising it the cost of living is going to increase.

Minimum Wage Change?

resist272727 — Wed, 28 Jul 2010 21:09:53 GMT

Since the 2007 Congress shift, minimum wage has gone from a CPI-adjusted 57-year low (2006-$5.48 in '09 dollars) to a 27-year high (2009-$7.25). In most states it's even higher.

Do you think that (a.) Obama will/plans to raise minimum wage any higher and (b.) a minimum wage drop to, say $5.50/$6 would significantly help the unemployment situation? I know these are kind of dual questions relating to what will and what should happen, but I'd like to know what the opinions on this are.

Note that Obama said "We shouldn't raise the minimum wage every 10 years, we should raise it every year, to keep up with inflation. If you work in this country, you should not be poor." in 2008 before he was elected. But would a Republican House have the will to block this?